Rising fuel prices worry MPs despite minister’s assurance
The Minister was appearing before Parliament presenting a statement on the skyrocketing prices of fuel in the country.
The Minister of State for Energy, Sorld oil demand & the seasonal impact of the summer season in Europe & United States.
He said the situation has been worsened by the foreign exchange fluctuations but was quick to assuringly noted that Uganda’s prices are competitive at the East Africa Community (EAC) regional level.
He said: “However, despite being a landlocked country, Uganda’s fuel prices remain competitive, and transit trucks often purchase diesel in Uganda before crossing into Kenya due to lower prices.”
The Minister was appearing before Parliament presenting a statement on the skyrocketing prices of fuel in the country.idronius Okaasai, has attributed the rising fuels prices in Uganda to the deepening OPEC & supply cuts, strong w
When asked by Speaker of the Parliament Annet Anita Among on what interventions government has come up with to intervene on skyrocketing fuel prices, Minister Okasaai said, “We shall continue assuring the country & monitoring supply. What my Ministry is responsible is to assure the country since these are global issues.”
He said Uganda operates a liberalized downstream petroleum market, where pump prices are determined by the forces of demand and supply.
According to Minister Okaasai, several global factors have impacted crude oil prices such as; OPEC members who have implemented extra supply cuts to balance the oil market therefore reducing overall oil production.
He said: “This has led to higher crude oil prices as supply tightens.”
Okaasai also blamed the high fuel prices on increased world oil demand which has reached record levels, with demand hitting 103 million barrels per day in June 2023.
- He said: “As a net importer of petroleum products, Uganda is a price taker. This means that when global oil prices rise, it directly affects prices at the pump in Uganda.”
